Accounting · Balance Sheet Concepts & Statements Analysis

Consider the following statements regarding the Balance Sheet Equation: Statement I: When a company repurchases its own shares (buyback) from the market using surplus cash, it leads to a decrease in total assets and an equivalent decrease in total equity. Statement II: Converting a short-term bank overdraft into a long-term loan results in a decrease in current liabilities and an increase in non-current liabilities, keeping total assets and total equity unchanged. Statement III: Any interest accrued on investments but not yet received (Accrued Income) is considered a liability. Statement IV: The payment of an outstanding salary expense that was recorded in the previous month results in a decrease in total assets and a decrease in total liabilities in the current month. Statement V: Depreciation is a method of valuation of fixed assets to ensure they are shown at current market price on the balance sheet date. Which of the above statements are correct?